US GDP growth revised up to 1.4% in Q2

US real gross domestic product increased at an annual rate of 1.4%in the second quarter of 2016, according to the "third" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.8%.

This reading comes above from last month's estimate of a 1.1% growth rate in Q2. Expectations were for a GDP growth of 1.3% pace for the April to June period.   

“The increase in real GDP in the second quarter reflected positive contributions from personal consumption expenditures (PCE), exports, and nonresidential fixed investment,” said the BEA. “These were partly offset by negative contributions from private inventory investment, residential fixed investment, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.”

The PCE price index increased 2.0% in Q2, compared with an increase of 0.3% in Q1, while excluding food and energy prices, the PCE price index increased 1.8%, compared with an increase of 2.1%.